Goldman Sachs predicts that stocks in Asia and emerging markets will outperform the S&P 500 over the next decade. The Vanguard FTSE Pacific ETF focuses on Asian economies, including Japan, Australia, and Korea. The Vanguard FTSE Emerging Markets ETF offers exposure to emerging-market economies like China, Taiwan, and India.

Goldman Sachs forecasts annual returns of 10.3% for Asian stocks and 10.9% for emerging-market stocks over the next decade. The Vanguard FTSE Pacific ETF includes companies like Samsung Electronics, Toyota Motor, and Sony. The Vanguard FTSE Emerging Markets ETF includes top positions like Taiwan Semiconductor, Tencent Holdings, and Alibaba Group.

While Goldman Sachs expects Asian and emerging-market stocks to outperform the U.S. market, historical data shows the opposite. The S&P 500 has outperformed international equities in the past decade. Investors can consider the Vanguard index funds for exposure to Asian and emerging markets, but maintaining a significant portion of their portfolio in U.S. stocks may be prudent.

Read more at Nasdaq: 2 Vanguard Index Funds to Buy Now — They Can Beat the S&P 500 Over the Next Decade, According to Wall Street Analysts